As part of its 2021 Consumer Awareness Programme, the Office of Fair Trading (OFT) is issuing guidance in relation to various matters affecting local consumers.
In light of the increased number of distributors working through Multilevel Marketing Schemes (“MLMs”) in Gibraltar, the OFT would like to remind the public of the guidance issued by the OFT last year for those who may be considering engaging in this type of business model or are already doing so. To see our comprehensive guidance on MLMs and the things you should be considering before taking part in such shames see our full guidance: https://www.oft.gov.gi/images/documents/MLM_Awareness.pdf
This guidance also includes Gibraltar-specific matters to be taken into account by individuals which may make operating as an MLM scheme distributor impractical and unprofitable.
While participating in MLMs can be regarded as a business matter rather than a consumer matter, given the type of person that usually take part in this type of scheme and the potential for them to lose money, the OFT regards issues arising out of joining an MLM as both.